The bottom line was negatively impacted by higher raw material prices, mainly steel. A total of 3,757 bus units were sold during the three-month period, up 4% compared to the fourth quarter of 2017.
During the quarter, the management’s aggressive cost-cutting efforts more than offset the impact of higher steel prices
“We achieved significant structural cost reductions through our Transformational Initiatives to improve quality, reduce costs, and increase capacity. We expect continued gains in FY2019 from the implementation of these initiatives as well as the pricing we took to offset rapidly-increasing commodity costs late in FY2018,” said Blue Bird CEO Phil Horlock.
Looking ahead, Blue Bird expects revenues to be between $990 million and $1,025 million in fiscal 2019. Full-year adjusted EBITDA is forecast to be in the range of $80 million to 85 million and adjusted free cash flow in the $24-$28 million range. The management anticipates that the demand for school buses will increase in the coming years when institutions replace their existing fleets with new units.
Blue Bird shares closed the last trading session up 2.8% but remained below their long-term average. Currently, the stock is trading very close to the levels seen twelve months ago.